Etrion increases EBITDA in Q3

Aomori solar park in Japan. Source: Etrion (www.etrion.com).

November 8 (Renewables Now) - Japan-focused solar independent power producer Etrion SA (TSE:ETX) on Wednesday reported increased EBITDA for the third quarter of 2018 on higher installed capacity and electricity production in Japan.

Earnings before interest, tax, depreciation and amortisation (EBITDA) at the company, which owns and operates 57 MW of solar capacity in Japan, increased to USD 4.1 million (EUR 3.6m) from USD 2.5 million in the third quarter of 2017, helped also by a reduction in corporate overhead.

Revenues declined to USD 6.2 million from USD 7 million, but the latter figure also includes USD 2.1 million in revenues from Chile. Etrion no longer consolidates the subsidiary that owns a 70-MW solar power project in Chile.

The company booked a net loss of USD 1.5 million for the third quarter, mainly reflecting finance costs and general and administrative expenses at the corporate level.

In the nine-month period EBITDA increased to USD 7 million from USD 4.5 million, while net loss was USD 6.1 million.

Etrion warned that legislation proposed last month by the Japanese Ministry of Economy, Trade and Industry (METI) could have a negative impact on its 305-MW pipeline. Under the draft rules feed-in-tariffs (FiTs) would be reduced significantly for projects not yet connected that cannot meet certain new deadlines and requirements.

"The proposed new METI legislation adds uncertainty to our pipeline; METI has requested public opinion until November 21, 2018 and is subsequently expected to announce final rules within 30 days," said chief executive Marco A Northland.

The new rules would not affect the company's 45-MW Niigata project, which is expected to reach shovel-ready status by the first half of 2019.